BILL ANALYSIS

S.B. 1116

By: Zaffirini

Special Purpose Districts

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Crystal Clear Water Supply Corporation is a nonprofit water supply corporation created for the purpose of providing retail water service in portions of Comal, Guadalupe, and Hays Counties. Interested parties note that the corporation is interested in converting into a special utility district so that it may benefit from opportunities available to such a district. S.B. 1116 seeks to address this issue by creating the Crystal Clear Special Utility District and providing for the dissolution of the corporation.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1116 amends the Special District Local Laws Code to create the Crystal Clear Special Utility District, subject to voter approval at a confirmation election, to provide certain improvements, projects, and services for public use and benefit. The bill sets out provisions relating to the dissolution of the Crystal Clear Water Supply Corporation and the transfer of the corporation's assets, debts, and contractual rights and obligations to the district. The bill provides for, among other provisions, a limited power of eminent domain and the services to be provided by the district or the City of New Braunfels. The bill establishes the district's powers and duties and authorizes the district, subject to certain restrictions, to impose a water service impact fee. The bill, if it does not receive a vote of two-thirds of all the members elected to each house, prohibits the district from exercising the power of eminent domain.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.